The German Retail Federation (HDE) is warning consumers about online shops that appear to be German but are in fact operated by sellers based in China. These shops often fail to comply with European requirements and frequently sell inferior goods, the HDE said on Tuesday. Returns are in many cases tied to high costs. Consumer advice centres already have numerous problematic shops on their warning lists.
The HDE warned that the cost of return shipping to China can significantly exceed the value of the goods, depending on the size of the parcel. Many buyers therefore waive their right of withdrawal and keep the item instead. "The business model of many of these providers is based on exactly that," said Stephan Tromp, Deputy Chief Executive of the HDE. "The high return shipping costs make exercising the right of withdrawal, and even making complaints, economically unattractive."
The shops frequently appear with a German name, a German domain and in some cases a European address, which makes them difficult to identify. "Consumers should therefore pay particular attention to the imprint, the company's registered office and the withdrawal and return conditions," the HDE recommends. If the company's registered office or the return address is located in China, consumers should become suspicious. Reviews and experiences shared by other customers can also help.
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